Asian Paints shares on Wednesday (Feb 5) dropped as much 5 per cent as Q3 numbers failed to impress the Street. The Mumbai-headquartered paints company reported a decline in its revenue for the fourth consecutive quarter during the quarter under review while net profit fell by more than 20 per cent.

Asian Paints shares fell 5.10 per cent to hit a low of Rs 2,235. The stock has corrected 23 per cent in the past three months, and is now trading at 41 times FY27 EPS, as per analyst estimates.

Asian Paints shares fell 5% after weak Q3 earnings, with net profit down 23% YoY. Brokerages slashed target prices, citing competition, pricing pressures, and demand slowdown. Some expect further declines,

Asian Paints' consolidated net profit attributable to the owners of the company declined 23.3 per cent year-on-year (Y-o-Y) to Rs 1,110.5 crore in Q3FY25, down from Rs 1,447.7 crore in Q3FY24

"sell" rating on the stock, while the number of analysts with a "hold" and "buy" recommendation on Asian Paints stood at 11 and 10 respectively.

Rise in competitive intensity for market share, talent, and shelf-space, and mind share will keep Asian Paints' margins under pressure. To add to that, weakness in urban demand and a rise in competition in terms of mergers and acquisitions may also hurt earnings, ultimately leading to rating downgrade, Citi said.